Merced · Renting & eviction
Renting in Merced: the rules that apply
Merced requires just cause to end any lawful tenancy, no matter how long the tenant has lived there; the state cap limits rent increases on covered units. The city has no rules of its own on relocation pay, notices, deposits, retaliation, harassment, repairs or entry.
Key points
- Just cause: City rule: ending any lawful residential tenancy needs a just cause, regardless of how long the tenant has lived there.
- Rent increases: State law caps increases on covered units at 8.6% from August 1, 2026 through July 31, 2027.
- Rent freeze: City rule: rent may not rise for 6 months after a tenant returns from a demolition, remodel or repair displacement.
- Allowed reasons: City rule: allowed reasons include owner or family move-in, leaving the rental market, a government order, and demolition, remodel or necessary repairs.
- Relocation pay: State law requires 1 month's rent for no-fault evictions of covered units, paid within 15 calendar days of the notice.
- Ending a tenancy: State law requires 60 days' notice to end a tenancy, or 30 days if the tenant has lived there less than 1 year.
Each rule below is marked Merced code or CA state law and links to the section it comes from (checked October 2026). General information, not legal advice.
Rent increases
| Units covered |
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|---|---|
| How often rent can go up |
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CA state law Underneath, California law still applies. Rent cap right now: 8.6% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.6% inflation) (Civ. Code § 1947.12(a)(1), (g)). California's statewide rent cap — the full state rule →
Eviction and just cause
| When protection starts |
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|---|---|
| Units covered |
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| Allowed no-fault reasons |
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CA state law Underneath, California law still applies. Just cause required: After 12 months of lawful occupancy, the owner may terminate only for a just cause stated in the notice (Civ. Code § 1946.2(a)). Just-cause eviction in California — the full state rule →
Relocation payments
CA state law Merced has no rule of its own on this, so California law applies. No-fault eviction relocation assistance: One month's rent (as relocation payment or rent waiver), paid within 15 calendar days of the notice (Civ. Code § 1946.2(d)(3)(A)). Relocation under California's just-cause law — the full state rule →
Notices
We found no Merced rule on this in the Merced Municipal Code (checked October 2026). The state rule below applies.
| Notice of a rent increase | At least 30 days' notice for an increase of 10% or less; at least 90 days for an increase of more than 10% Applies: The 10% is measured against the rent charged at any time in the 12 months before the increase, counting all increases in that period together. |
|---|---|
| Notice to end a month-to-month tenancy (landlord) | 60 days' notice; 30 days if the tenant has lived there less than one year Applies: Where the unit is covered by just cause (Civ. Code § 1946.2) or a local ordinance, the notice must also state a qualifying cause. |
| Notice to end a month-to-month tenancy (tenant) | At least as long as the rental period (one month for a month-to-month tenancy) |
| 30-day notice when the unit is sold to an owner-occupant | 30 days' notice when a separately sellable unit is in escrow to a natural person who will live there for at least a year Applies: Notice within 120 days of opening escrow, given once, and all § 1946.1(d) conditions met. |
| Notice to pay rent or quit | 3 days, not counting Saturdays, Sundays and judicial holidays, stating the amount due and how to pay Applies: May be served any time within one year after the rent became due. |
| Notice to cure a lease violation or quit | 3 days, not counting Saturdays, Sundays and judicial holidays, to perform the broken lease term or leave |
| No fee for serving notices | A landlord may not charge the tenant a fee for serving or posting a notice |
Security deposits
CA state law Merced has no rule of its own on this, so California law applies. Security deposit cap: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)). Deposit return deadline: 21 calendar days after the tenant moves out, with an itemized statement of any deductions (Civ. Code § 1950.5(h)(1)). California security deposit law — the full state rule →
Retaliation
CA state law Merced has no rule of its own on this, so California law applies. Retaliation protection period: For 180 days after a tenant complains about habitability (to the landlord or an agency), the landlord may not evict, raise rent or cut services in retaliation (Civ. Code § 1942.5(a), (b)). Retaliatory eviction in California — the full state rule →
Harassment and lockouts
CA state law Merced has no rule of its own on this, so California law applies. Lockouts and self-help eviction banned: A landlord may not change locks, remove doors or windows, or remove the tenant's belongings to force a tenant out (Civ. Code § 789.3(b)). Utility shutoffs banned: A landlord may not cut off water, heat, electricity, gas or other utilities to force a tenant out (Civ. Code § 789.3(a)). Tenant harassment and lockouts in California — the full state rule →
Repairs and habitability
CA state law Merced has no rule of its own on this, so California law applies. Duty to keep the unit habitable: The landlord must deliver a unit fit to live in and repair conditions that make it untenantable (Civ. Code § 1941). Repair and deduct: A tenant may make a repair the landlord neglects and deduct the cost from rent, up to one month's rent, no more than twice in any 12 months (Civ. Code § 1942(a)). Habitability and repair-and-deduct — the full state rule →
Landlord entry
CA state law Merced has no rule of its own on this, so California law applies. Landlord entry notice: Reasonable written notice, presumed to be 24 hours, and entry only during normal business hours (Civ. Code § 1954(d)(1), (e)). Landlord entry notice in California — the full state rule →
Hotel and short-term rental tax
| Who collects it |
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Who this affects
Frequently asked questions
How much can rent go up in Merced?
State law caps increases on covered units at 8.6% from August 1, 2026 through July 31, 2027. City rule: rent may not rise for 6 months after a tenant returns from a demolition, remodel or repair displacement.
Does a landlord in Merced need a reason to evict?
City rule: ending any lawful residential tenancy needs a just cause, regardless of how long the tenant has lived there. City rule: allowed reasons include owner or family move-in, leaving the rental market, a government order, and demolition, remodel or necessary repairs.
Does a Merced landlord have to pay relocation?
State law requires 1 month's rent for no-fault evictions of covered units, paid within 15 calendar days of the notice.
How much notice does a Merced landlord have to give?
State law requires 60 days' notice to end a tenancy, or 30 days if the tenant has lived there less than 1 year.
How much can a Merced landlord charge for a security deposit?
Merced has no local rule on this that we found (checked October 2026); state law applies: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)).
What is the hotel tax on short-term rentals in Merced?
Merced's code: Each operator collects the tax from every guest at the same time as the rent. (§ 3.08.040).
General information, not legal advice.
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